RealTime IT News

PSINet Receives Type 1 License Approval in Japan

Rapidly-expanding ISP PSINet Inc. Thursday announced its subsidiary PSINetworks Japan Inc. had been granted a Type 1 License by the Japanese government which will allow the company to purchase telecom companies and expand its IP network.

PSINetworks Japan can now offer high-speed circuit services in Asia through its stake in the Japan-US Cable Network System, and its increased use of this system will also expand its bandwidth capacity.

PSINet (PSIX) currently holds similar licenses in Europe, the United States and the UK. The combination of licenses will position the company to own telecom facilities in major global markets.

"The Type 1 license approval in Japan is a significant milestone for our Japanese business operations," explained Vincent Gebes, representative director of PSINetworks Japan. "In the past, the Type 1 license was restricted mainly to telephone service providers."

PSINet has been fast on the acquisition path for the last year, purchasing 15 overseas ISPs since the beginning of the year. When the company released its earnings in July, it indicated that there would not be any significant slowing of the extended shopping spree.